Golar LNG’s spin-off LNG carrier venture with Eastern Pacific Shipping (EPS) Cool Company (CoolCo) closed an upsized private placement of $275m shares late on Thursday following a surge of interest from investors.
It was opened on 27 January and was originally billed as a $250m offering that would close at the end of trading European time on 28 January.
Golar said CoolCo would have an initial equity value of $400m following the fundraising effort.
EPS will be the largest shareholder with a 38% stake, Golar will own 31% and the public 31%.
The shares will be listed on the Oslo over-the-counter exchange immediately following completion of the private placement.
CoolCo will apply to list its shares on the Euronext Growth Oslo during February 2022.
The company is also targeting a US listing in the second half of this year.
TradeWinds understands that both Golar chairman Tor Olav Troim and EPS owner Idan Ofer, who are working together on this for the first time, were on hand in Oslo to present to investors.
CoolCo will own eight tri-fuel diesel-electric LNG carriers once a sale-and-purchase deal on the ships is closed in February.
Consolidator
Golar said CoolCo aims to become a growth vehicle and consolidator of modern LNG carriers, providing investors with direct market exposure to expected continued strength in the LNG freight market.
Those watching the set up of CoolCo said Ofer has been looking at how to make a move into LNG carriers for some time, adding that it is one of the only shipping sectors he is not involved in.
They said Ofer and EPS, which has already championed LNG as a fuel in its fleet, is attracted by LNG’s high visibility in that it is possible to calculate how many vessels will be required.
But they also see LNG as at an important inflection point with historically high gas prices, more production coming onstream, the product establishing itself as a commodity and a spot market, while also offering lower emissions as a fuel.
Spot exposure
One indicated that Ofer and EPS are keen to get LNG carriers with spot exposure now rather than wait until 2025 for newbuilding deliveries.
Golar and CoolCo chief executive Karl Fredrik Staubo said: “We are very pleased with the reception of CoolCo.
“The company will target to become a leading player for an expected continued strengthening of LNG shipping fundamentals, driven by new liquefaction capacity coming on stream, increasing distances and effective supply reductions from new environmental regulations effective from 1 January 2023.
“We are excited to develop Cool Company with Eastern Pacific Shipping and look forward to exploring consolidation opportunities.”
EPS chief executive Cyril Ducau said: “The strong market support for this transaction creates a solid foundation for CoolCo.
“With a strong shareholder base, robust capital structure, experienced team and strong LNG market reputation, the company is well equipped to realise value from an enviable market position and build on favourable dynamics for LNG shipping.”
| Vessel | Size (cbm) | Built | Propulsion | Cargo containment system |
| Golar Seal | 160,000 | 2013 | TFDE | Membrane |
| Golar Crystal | 160,000 | 2014 | TFDE | Membrane |
| Golar Bear | 160,000 | 2014 | TFDE | Membrane |
| Golar Frost | 160,000 | 2014 | TFDE | Membrane |
| Golar Glacier | 162,000 | 2014 | TFDE | Membrane |
| Golar Snow | 160,000 | 2015 | TFDE | Membrane |
| Golar Kelvin | 162,000 | 2015 | TFDE | Membrane |
| Golar Ice | 160,000 | 2015 | TFDE | Membrane |
